No major disruption; economy grew by 4.1% last year – Finance Minister

Finance Minister Winston Jordan Friday said there is nothing to suggest that the economy has been stalled as a result of the political situation following the December 21 No Confidence motion but admitted long-term investment projects may have been affected.

“There has been no major disruption to the economy,” Jordan said during a recording of the Ministry of Finance’s TV programme Dollars and Sense, which will be aired later.

However, he stated: “I would not be naïve in saying that perhaps some people who might have wanted to make investments – long term investments – might have held back to see where the economy is going.”

For last year, Jordan said the “good news” is that economy actually grew by 4.1, way above the 3.4% that was projected. In addition, he said inflation was projected at 2% but actual inflation was 1.6%.

For this year, he said the Government was “accelerating” the Public Sector Investment Programme (PSIP), which includes infrastructural projects across the country.

Jordan pointed to a flurry of advertisements by the Government inviting tenders for various projects.

He denied that the acceleration of the PSIP was “not only due to elections” but rather because of the strategies adopted to reduce the gap between “budgeting and action” following an initial sloth in the early years of the Coalition government.

He said several companies, even banks exiting Guyana, have recorded favourable profits.

As such, Jordan agreed with statements by President David Granger earlier this week.

The President denied that business was on the decline as a result of the political uncertainty facing the country.

As a matter of fact, the Head-of-State is adamant that there is no confusion or crisis facing the country.

Speaking for the first time to reporters since the Court of Appeal ruled that the December 21 No-Confidence Motion was not validly passed, President Granger described the private sector’s analysis of the political situation as a “misperception.”

“I will agree with the President that there is a misperception that nothing is happening,” Jordan stated.